Remarks at Luncheon Sponsored by Confederation of Indian Industry and U.S.-India Investors Forum in Mumbai, India

AS PREPARED FOR DELIVERYThursday, March 29, 2012CONTACT OFFICE OF PUBLIC AFFAIRS202-482-4883

Commerce Secretary John BrysonRemarks at Luncheon Sponsored by Confederation of Indian Industry and U.S.-India Investors Forum in Mumbai, India

Good afternoon. Thank
you, President Sachdev. I’m pleased to see the formation of the
U.S.-India Investors Forum. Congratulations to all of the founding board
members.

And thank you again to our
host, CII. You have been excellent hosts in Delhi, Jaipur and now here in
Mumbai.

Briefly, I also want to
recognize the three other U.S. federal agencies traveling with us: the Trade and
Development Agency, the Overseas Private Investment Corporation, and the
Export-Import Bank.

The Trade and Development
Agency, represented by Henry Steingass and Mark Dunn. OPIC, represented by Peter
Ballinger. And Larry Walthers, the
Director of the Export-Import Bank. Can each of you raise your
hands?

All of these agencies do
critically important financing, spurring growth and opportunity in both of our
counties.

Today marks the fifth day of my
first trade mission as Secretary of the U.S. Department of Commerce. 16
excellent U.S. businesses came with me on this infrastructure-focused trip.

They specialize in project
management, engineering services, transportation, and energy. We have now
highlighted in many meetings how their deep experience with America’s
infrastructure can be used to help meet India’s pressing needs in this area.

As President Obama said two
years ago, the U.S.-India relationship is one of the defining partnerships of
the 21st century. I agree.

As you all know well, back in
the early '90s, India and outstanding leaders like then-Finance Minister Singh
decided that openness and a market-driven economy were essential to the
economic future of the world’s largest democracy.

As a result, India’s
entrepreneurial spirit was then unleashed for the world to see. And, for
the past 10 years, it’s no coincidence that India’s economy has grown quickly–at an annual rate of around 8 percent.

With this growth, millions of
people have been lifted out of poverty. Also, India’s top companies–like Tata–are now known worldwide.

This growth has resulted in
increased demand for American-made products and services. U.S. exports to
India have grown from less than $4 billion in 2001 to over $21 billion last
year.

And America has reciprocated.
The U.S.–an exceptionally open market–receiving $36 billion in goods from
India in 2011.

Today, we have a unique
opportunity to build on our trade partnership due to India’s aggressive plan to
invest $1 trillion over the next five years in infrastructure.

This plan is ambitious and
admirable. This includes as many as 600 major projects, with a strong
emphasis on public-private partnerships.

And what I want most to
emphasize here is what we see as the importance of using this moment as an
opportunity to deepen and broaden the U.S.-India partnership. Our
countries and our businesses should do more work together in cities like Jaipur–which the delegation visited yesterday. In 20 years, 68 cities in India
could have populations over one million.

Today, American businesses want
to serve as partners in building India’s infrastructure and supporting
inclusive growth. U.S. businesses want to help pave the roads, lay the
rails, build the airports, and bring the energy–critical efforts that will
drive prosperity and job creation in both our countries.

If American businesses are able
to compete and contribute more, we can help ensure that strong and balanced
trade growth remains a pillar of the U.S.-India relationship in years to come.

What I particularly want to
underscore in these remarks today is that strong and balanced growth must also
characterize our investment relationship–another pillar of our economic
relationship.

Already, the bilateral
investment relationship between the U.S. and India is stronger than ever. Many American companies have invested in India over the past five years. U.S. investment has grown to over $27 billion across a wide range of sectors,
including services, manufacturing, information technology and more.

At the same time, India is a
fast-growing source of direct investment into the United States. We see more
each day.

For example, just last
September, Tata Chemicals announced a joint venture with the New Jersey-based
company that makes America’s famous Arm & Hammer products. Together,
they are going to make sodium-based chemicals for the purposes of pollution
control. Specifically, they are going to invest $60 million in a new
manufacturing facility.

Another example, also from last
September: HCL Technologies opened a new software engineering hub in the state
of Washington. This will add 400 jobs to HCL’s operations in the U.S. I
should note that Governor Christine Gregoire was on-hand to offer support with
state-level funds to help HCL with workforce training–a great example of
public-private collaboration.

We need more stories like
these, because while India’s direct investment in the U.S. is growing quickly,
it remains in total only about $3 billion, or about $7 billion when you include
investments made through other countries.

Today, I want to encourage more
India-based companies and investors to Select the USA. In fact, that is,
the name of our new worldwide initiative is SelectUSA–an initative strong
supported by President Obama–the first, coordinated effort by the U.S.
government to attract new business investments to America.

India is one of the first 10
markets for SelectUSA. Our message is absolutely clear: We welcome your
investments.

As you already know, America
has world-class universities, cutting-edge R&D, deep supply chains,
powerful IP protections, a strong patent system that is getting better each
day, and a talented and productive workforce–a workforce which includes many
Indian-Americans who have driven global innovation and entrepreneurship.

Through SelectUSA, our
commercial service officers here in India are going to do more to give you the
tools you need: We will serve as an information
clearinghouse for CEOs and investors. We will help you when you are facing
confusion, delays, or obstacles. We
will even help you after you have already invested in the U.S.–because we
want you to do it again.

In addition, we will provide
more opportunities for you to make personal connections with local and state
leaders in the U.S.–as in the HCL example in Washington State.

On that note, I want to
personally invite you to the First Annual SelectUSA Investment Summit this fall
in Washington, D.C. Companies from around the world will come and meet
with officials at all levels of government as well as economic development
leaders.

They want to talk with you
about how America is a very strong place to invest, to hire, and to help build
the future of your business.

And as we look to the future of
our investment relationship, we know we must do even more.

We know, for example, that
America’s corporate tax code is overly complex and needs to be reformed. America has one of the highest statutory corporate tax rates, which hasn’t
changed meaningfully since the 1980s.

President Obama has asked
Congress to lower the corporate tax rate from 35 percent to 28 percent–and to
close the loopholes that lobbyists have added over the years.

I believe that this is
something that both Democrats and Republicans in the U.S. Congress can and
should agree on–and, with the president, I will continue to push for it to be
adopted this year.

And while each of our countries
can take actions like that on our own, I’m more excited about the work that we
can do together.

For example, I announced on
Monday that we have renewed our bilateral Commercial Dialogue for two additional
years. This involves the Indian Ministry of Commerce and Industry
and the Commerce Department’s International Trade Administration.

The Dialogue brings together
both of our public and private sectors, to make progress and make constructive
decisions on the top issues of doing business in each other’s markets.

In that forum, for example, I’m
pleased to say that we will now seek to expand into new areas of engagement on
smart grids, intelligent transportation systems and sustainable manufacturing

And we can build on that
Dialogue. This administration supports moving forward with a Bilateral
Investment Treaty.

Such a treaty would send an
important signal to potential U.S. investors. It would provide strong
investor protections to help India attract investment, particularly for
much-needed infrastructure projects.

And it’s a two-way
street. A strong treaty would also help protect Indian investors and
companies who are increasing their investments in the U.S.–including those
here today.

Overall, this treaty could
support market-based policies that provide greater stability and predictability
for business leaders in both countries.

In short, it is clear, that
investors and CEOs in both of our countries are at a critical moment in the
U.S.-India relationship.

In the interactions this week
between U.S. and Indian business executives, I have seen first-hand that we
share the same values, the same concerns and the same desire to build growth
and prosperity for our people.

While I know that you have many
challenges, I believe that India–the world’s largest democracy–can work to
build one of the world’s strongest business climates.

And my hope is that all of us
can join together to send one very clear message. Our two democratic countries
are serious global business leaders in the 21st century, and we are jointly
committed to the principles of fairness, openness, transparency, and a level
playing field.

In all of our efforts, we must
continue to come to the table and exchange ideas on how we can broaden and
deepen our relationship. As a simple sign of your commitment to that
approach, I hope you join the U.S.-India Investors Forum if you haven’t
already.

Together, we can find,
illuminate, and maximize win-win situations that benefit both the U.S. and
India. If we are successful, our futures will indeed be bright, our
people will indeed be prosperous, and the global economy, indeed, will be much
stronger.